Welcome to the Boomerang Generation

Graham_Devon

More than 3m people aged between 20 and 34 are still living at home with their parents, according to the Office for National Statistics (ONS). That’s about one in four of those in this age group. Raising tuition fees will mean more than half of graduates are likely to move back in with parents in future, according to research by LV=, formerly Liverpool Victoria, Britain’s biggest friendly society.

Many families may welcome this trend – Sue, my wife, and I are actively looking forward to the return of Joseph, our son, from Bristol University this summer and only wish he could stay for longer before his career takes him elsewhere in September. But other families may feel less enthusiastic about the reappearance of adult offspring on the couch or in the kitchen.

Loveable foibles in a child that were still tolerable in a teenager might prove unbearable in a 25-year-old or even, heaven forfend, a 30-year-old man or woman. So, how can parents cope with the boomerang generation?

Get a grip, seemed to be the answer from most of the housing experts I asked. Nicholas Ayre, director of property search agent Home Fusion, was firmly in the ‘tough love’ camp: “It can be a shock to the system for both parties but parents need to recognise that, at this stage in life, their offspring are supposed to be independent and responsible adults – or risk being their own worst enemies.

Other suggestions, apart from tough love!....

Parents and grandparents could opt to buy a house with their children, for their children to live in. Their children could look at lend a hand schemes, where parents put down 20% on the house. Or parents could remortgage their own home to give the deposit to their kids.

Just wondering if "the boomerang generation" will catch on as a term.

Comments on the article are interesting. Apparently it's their own fault, as they probably have an iphone, and if they didn't would be able to afford a house.

http://blogs.telegraph.co.uk/finance/ianmcowie/100017927/high-house-prices-rents-and-graduate-debts-create-boomerang-generation/

HAMISH_MCTAVISH

Graham_Devon wrote: »

Comments on the article are interesting. Apparently it's their own fault,

Don't worry, the comments will change soon enough once hpc gets hold of it.

MrRee_2

The Government should allow Tax Free gifts of a House between family members.

A house, say £165,000, could be bought for offspring without tax penalties ...... how about the government contributing 25% to the 'gift'?

Would pick up the housing market, that's for sure!

ukcarper

I’m not sure what higher tuition fees have got to do with it as you don’t have to start paying them back until you earn £21k.

　

　

noelphobic

ukcarper wrote: »

I’m not sure what higher tuition fees have got to do with it as you don’t have to start paying them back until you earn £21k.

　

　

Depends when you went to uni. My son graduated 3 years ago and I think it's over 14 or 15k for him. He was away at uni for 3 years, home for 3 years and has just recently moved into a shared rented house. I would rather he had saved that money towards buyiing a house but it was what he wanted.

ukcarper

noelphobic wrote: »

Depends when you went to uni. My son graduated 3 years ago and I think it's over 14 or 15k for him. He was away at uni for 3 years, home for 3 years and has just recently moved into a shared rented house. I would rather he had saved that money towards buyiing a house but it was what he wanted.

Fair enough I don’t think your son is unusual my stepson did the same I think a lot of students after having experienced the freedom are reluctant to move back home and shared accommodation can be quite affordable..

moneyinmypocket

I lived in a shared house in my early 20s with some friends, was a good time and always look back on it with found memories. It would be hard for someone having lived away during uni to then come back home to there parents

JonnyBravo

MrRee wrote: »

The Government should allow Tax Free gifts of a House between family members.

Ermmm, why can't you do this already?

BTW, how many kids do you have MrRee? Will you set them all up with a house?

Generali

JonnyBravo wrote: »

Ermmm, why can't you do this already?

BTW, how many kids do you have MrRee? Will you set them all up with a house?

You can give your kids a house if you wish to do so. If you die within 7 years then the value of the houses will be calculated as part of the estate for IHT purposes, if you don't then they won't.

ruggedtoast

These boomers want to have house prices at ten times the average salary, they want young people to work for minimum wage in their businesses and factories, they want generous final salary pensions and their State pension tax free, they want motor homes, caravans, foreign holidays, they want to pass the burden of university tuition fees to the young when they got theirs free, and they want £900 a month for their buy to let flat in a bad area.

But now they complain when their children live at home because they can't afford to move out.

Priceless.

JonnyBravo

Generali wrote: »

You can give your kids a house if you wish to do so. If you die within 7 years then the value of the houses will be calculated as part of the estate for IHT purposes, if you don't then they won't.

Exactly.....